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1) the source must have low jitter
2) the D/A must be low-noise (power system) and low distortion - I prefer a minimum of digital and analog filtering
3) the preamp must be transparent

If you have a great DAC, but give it a high-jitter source, you might as well have bought a cheap DAC. You will not get the benefits of what it can deliver.

If you have a low jitter source and a great DAC, but a noisy preamp, it will "homogenize" the sound by adding noise and distortion. It will mask the great sound of your source and DAC.

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